France top for property investors

Low capital gains tax, high rental demand, and relatively low house prices have seen France tipped as the next big thing for property investors.

14:53 30 March 2005

Low capital gains tax, high rental demand, and relatively low house prices have seen France tipped as the next big thing for property investors.

Property investment specialist Assetz International has also highlighted tourist regions including the Alps and Paris as areas particularly attractive to prospective investors.

And Britons are already wising up, with Assetz recording a 78 per cent increase in demand for French property.

A lack of accommodation in tourist hotspots has also seen off-plan purchases performing well with secure rental yields.

"Investing off-plan in France in small developments that have a management company assigned is ideal for those who want a second home but don't want the hassle of looking after the garden, irrigation or swimming pool," said Stuart Law, managing director of Assetz.

The Cote d'Azur and Languedoc in the south of France are seen as top investment choices, with prices currently rising ten to 15 per cent a year

Traditional tourist locations like Paris and the Alps are also seeing heavy house price growth.

And prices remain considerably cheaper than in the UK. A one-bedroom apartment in the Parisian suburbs will set investors back 70,000 to 80,000. Prices are higher in the centre, but still below London levels, Assetz noted.

Cannes was seen as the top location to buy on the Cote d'Azur, with regular conferences and the famous film festival leading to stronger rental demand than anywhere else in the south of France.

And the market shows no signs of abating, with around 60 million tourists visiting France last year making it one of the top tourist destinations in the world.